Many borrowers are asking questions about the feasibility of a real estate project through a grouping of credits, here are our answers.
Buying a house, an apartment: buying back loans?
The purpose of this credit transaction is to take all of the remaining capital to be repaid and to extend the repayment term, which has the effect of reducing the amount of the new monthly payment. In this configuration, an amount can be added to the financing in order to finance a project. Simply, the amount of this project cannot exceed the value of the property offered as collateral. This implies for the borrower to be already an owner and to be able to financially takes on a new substantial loan.
Some credit institutions specialize in these types of financing only dedicated to owners with a significant portion of property outstanding. For tenant households, the amount will be limited to a small project such as the purchase of a vehicle or the purchase of furniture.
A solid assembly to validate the project
This type of financing is possible but requires the use of banking intermediaries specializing in the study and research of solutions for their customers. Bank advisers are not trained for these types of real estate projects and will not have solutions to provide to their customers, simply because this operation requires specific products.
It is important to specify that the consolidation of credits can lead to an increase in the total cost of the credit, the borrower must be aware of this and do not forget to compare his situation before and after consolidation of his loans. Within the framework of this project, an evaluation of the real estate is necessary, it is advisable to specify as of the seizure of the form the value of the good in order to obtain an estimate as close as possible to reality.
Home loan buybacks: falling rates
This is nothing new, real estate rates are extremely low and this drop is also being propagated for mortgage buyback operations. It is more profitable to consolidate loans at this time rather than two to three years back. The financing conditions are favorable to owner households whose certain profiles (significant income) can hope to obtain rates close to 2%.
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